16
Mar
Strong harvests are a natural expectation for lower food prices, but the relationship between production volumes and retail prices is far from direct. Prices reflect the interaction of physical supply, logistics, policy, finance, and market structure. A good harvest in tonnes does not automatically mean abundant, cheap food on every table. Below are the main mechanisms that explain why food prices can rise even when aggregate harvests look strong.Primary factorsMismatch between global supply and exportable supply: A country can record a big harvest but still export little because domestic demand, government procurement, or quality issues absorb the crop. For example,…










